Office of Parliamentary Counsel

Office of Parliamentary Counsel

Office of Parliamentary Counsel

Section 1: Entity overview and resources

1.1Strategic direction

The strategic direction statement for the Office of Parliamentary Counsel (OPC) can be found in the 2014–15 Portfolio Budget Statements. There has been no change to OPC’s strategic direction as a result of Additional Estimates.

1.2Entity resource statement

The entity resource statement details the resourcing for OPC at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2014–15 budget year, including variations through Appropriation Bill No.3.

Table 1.1: Entity resource statement—additional estimates for 2014–15 as at Additional Estimates February 2015

Total
Estimate / Proposed / estimate at / Total
as at / Additional / Additional / available
Budget / + / Estimates / = / Estimates / appropriation
2014–15 / 2014–15 / 2014–15 / 2013–14
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL
SERVICES(1)
Departmental appropriation
Prior year departmental
appropriation(2) / 11,695 / – / 11,695 / 11,864
Departmental appropriation(3) / 15,798 / 565 / 16,363 / 16,327
s 74 retained revenue receipts(4) / 5,725 / – / 5,725 / 6,205
Total net resourcing for entity / 33,218 / 565 / 33,783 / 34,396

All figures are GST exclusive.

(1) Appropriation Act (No. 1) 2014–15 and Appropriation Bill (No. 3) 2014–15.

(2) Estimated adjusted balance carried forward from previous year for annual appropriations.

(3) Includes an amount of $0.930m in 2014–15 for the departmental capital budget (seeTable 3.2.5 forfurther details). For accounting purposes this amount has been designated as ‘contributions by owners’.

(4) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

1.3Entity measures table

Table 1.2 summarises new government measures taken since the 2014–15 Budget.

Table 1.2: Entity 2014–15measures since Budget

2014–15 / 2015–16 / 2016–17 / 2017–18
Programme / $’000 / $’000 / $’000 / $’000
Expense measures
National Security—additional
counter-terrorism funding / 1.1
Departmental expenses / 565 / – / – / –
Total expense measures / 565 / – / – / –

Prepared on a Government Finance Statistics (fiscal) basis.

1.4Additional estimates and variations

The following tables detail the changes to the resourcing for OPC at Additional Estimates, by outcome. Table 1.3 details the additional estimates and variations resulting from new measures since the 2014–15 Budget in Appropriation Bill No.3. Table 1.4 details additional estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2014–15 Budget

Programme / 2014–15 / 2015–16 / 2016–17 / 2017–18
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Increase in estimates (departmental)
National Security—additional
counter-terrorism funding / 1.1 / 565 / – / – / –
Net impact on estimates
for Outcome 1 (departmental) / 565 / – / – / –

Table 1.4: Additional estimates and variations to outcomes from other variations

Programme / 2014–15 / 2015–16 / 2016–17 / 2017–18
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Decrease in estimates (departmental)
Changes in wage and price indices / 1.1 / – / (30) / (29) / (45)
Net impact on estimates
for Outcome 1 (departmental) / – / (30) / (29) / (45)

1.5Breakdown of additional estimates by appropriation bill

Table 1.5 details the additional estimates sought for OPC through Appropriation Bill No.3. OPC has no additional estimates through Appropriation Bill No.4.

Table 1.5: Appropriation Bill (No. 3) 2014–15

2013–14 / 2014–15 / 2014–15 / Additional / Reduced
Available(1) / Budget / Revised / Estimates / Estimates
$’000 / $’000 / $’000 / $’000 / $’000
DEPARTMENTAL PROGRAMMES
Outcome 1
A body of Commonwealth laws and instruments that give effect to intended policy, and that are coherent, readable and readily accessible, through the drafting and publication of those laws and instruments / 16,327 / 15,798 / 16,363 / 565 / –
Total departmental / 16,327 / 15,798 / 16,363 / 565 / –

(1) 2013–14 available appropriation is included to allow a comparison of this year’s appropriation with what was made available for use in the previous year.

Section 2: Revisions to outcomes and planned performance

2.1Outcome and performance information

There are no changes to OPC’s outcome and performance information as reported in the 2014–15 Portfolio Budget Statements.

Outcome 1

Outcome 1 strategy

There are no changes to the strategy for Outcome 1 as reported in the 2014–15 Portfolio Budget Statements.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: A body of Commonwealth laws and instruments that give effect to intended policy, and that are coherent, readable and readily accessible, through the drafting and publication of those laws and instruments / 2014–15
2013–14 / Revised
Actual / estimated
expenses / expenses
$’000 / $’000
Programme 1.1: Legislative drafting and publication
Departmental expenses
Departmental appropriation(1) / 20,417 / 21,158
Expenses not requiring appropriation in the budget year(2) / 626 / 448
Total expenses for Outcome 1 / 21,043 / 21,606
2013–14 / 2014–15
Average staffing level (number) / 103 / 93

(1) Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘s 74 retained revenue receipts’.

(2) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses of $0.406m and resources received free of charge (Australian National Audit Office audit fees) of$0.042m.

Programme 1.1 expenses

2014–15 / 2015–16 / 2016–17 / 2017–18
2013–14 / Revised / Forward / Forward / Forward
Actual / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Legislation / 10,472 / 10,852 / 10,523 / 10,527 / 10,636
Programme and project management / 938 / 972 / 942 / 943 / 952
Legislative drafting capability / 2,657 / 2,754 / 2,670 / 2,671 / 2,699
Standardisation and quality control of legislation / 1,563 / 1,620 / 1,571 / 1,571 / 1,587
Publication / 4,787 / 4,960 / 4,810 / 4,812 / 4,862
Expenses not requiring appropriation in
the budget year(1) / 626 / 448 / 554 / 564 / 554
Total programme expenses / 21,043 / 21,606 / 21,070 / 21,088 / 21,290

(1) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and resources received free of charge (Australian National Audit Office audit fees).

Section 3: Explanatory tables and budgeted financial statements

3.1Explanatory tables

Estimates of special account flows

OPC has no special accounts.

3.2Budgeted financial statements

3.2.1Analysis of budgeted financial statements

OPC’s income statement has been updated:

•to reflect the 2013–14 operating result (an operating surplus of $1.690m)

•for the impact of the National Security—additional counter-terrorism funding measure ($0.565m in 2014–15)

•for indexation changes across the forward years.

OPC’s balance sheet has been updated to reflect the impact of the closing balances from 2013–14.

3.2.2Budgeted financial statements

Table 3.2.1: Budgeted departmental comprehensive income statement (showing net cost of services) for the period ended 30 June

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 16,056 / 16,016 / 15,976 / 16,231 / 16,370
Suppliers / 3,711 / 4,500 / 3,898 / 3,651 / 3,724
Depreciation and amortisation / 1,269 / 1,090 / 1,196 / 1,206 / 1,196
Finance costs / 7 / – / – / – / –
Total expenses / 21,043 / 21,606 / 21,070 / 21,088 / 21,290
LESS:
OWN-SOURCE INCOME
Sale of goods and rendering of services / 6,475 / 5,725 / 5,795 / 5,872 / 5,954
Other revenue / 219 / 42 / 42 / 42 / 42
Total own-source income / 6,694 / 5,767 / 5,837 / 5,914 / 5,996
Net cost of (contribution by)
services / 14,349 / 15,839 / 15,233 / 15,174 / 15,294
Revenue from government / 16,039 / 15,433 / 14,721 / 14,652 / 14,782
Surplus (deficit) / 1,690 / (406) / (512) / (522) / (512)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent
reclassification to profit or loss
Changes in asset revaluation surplus / 10 / – / – / – / –
Total other comprehensive income / 10 / – / – / – / –
Total comprehensive income (loss) / 1,700 / (406) / (512) / (522) / (512)
Note: Impact of net cash appropriation arrangements
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income (loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations / 2,284 / – / – / – / –
Less depreciation/amortisation expenses
previously funded through revenue
appropriations / 584 / 406 / 512 / 522 / 512
Total comprehensive income (loss)
as per the statement of
comprehensive income / 1,700 / (406) / (512) / (522) / (512)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
ASSETS
Financial assets
Cash and cash equivalents / 345 / 423 / 391 / 391 / 391
Trade and other receivables / 15,080 / 12,480 / 12,008 / 12,008 / 10,924
Other financial assets / 65 / 65 / 65 / 65 / 65
Total financial assets / 15,490 / 12,968 / 12,464 / 12,464 / 11,380
Non-financial assets
Land and buildings / 390 / 3,503 / 3,508 / 3,178 / 2,848
Property, plant and equipment / 581 / 770 / 742 / 704 / 919
Intangibles / 2,666 / 1,954 / 1,269 / 580 / 969
Other non-financial assets / 232 / 247 / 237 / 237 / 237
Total non-financial assets / 3,869 / 6,474 / 5,756 / 4,699 / 4,973
Total assets / 19,359 / 19,442 / 18,220 / 17,163 / 16,353
LIABILITIES
Payables
Suppliers / 273 / 280 / 287 / 287 / 287
Other payables / 746 / 767 / 791 / 791 / 791
Total payables / 1,019 / 1,047 / 1,078 / 1,078 / 1,078
Provisions
Employee provisions / 6,075 / 6,290 / 6,017 / 6,017 / 6,017
Other provisions / 272 / 272 / – / – / –
Total provisions / 6,347 / 6,562 / 6,017 / 6,017 / 6,017
Total liabilities / 7,366 / 7,609 / 7,095 / 7,095 / 7,095
Net assets / 11,993 / 11,833 / 11,125 / 10,068 / 9,258
EQUITY
Parent entity interest
Contributed equity / 5,842 / 6,772 / 7,260 / 7,409 / 7,795
Reserves / 1,604 / 1,604 / 1,604 / 1,604 / 1,604
Retained surplus (accumulated deficit) / 4,547 / 3,457 / 2,261 / 1,055 / (141)
Total parent entity interest / 11,993 / 11,833 / 11,125 / 10,068 / 9,258
Total equity / 11,993 / 11,833 / 11,125 / 10,068 / 9,258

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (budget year 2014–15)

Asset / Contributed
Retained / revaluation / equity/ / Total
earnings / reserve / capital / equity
$’000 / $’000 / $’000 / $’000
Opening balance as at 1 July 2014
Balance carried forward from
previous period / 4,547 / 1,604 / 5,842 / 11,993
Adjustment for changes in
accounting policies / – / – / – / –
Adjusted opening balance / 4,547 / 1,604 / 5,842 / 11,993
Comprehensive income
Surplus (deficit) for the period / (406) / – / – / (406)
Total comprehensive income / (406) / – / – / (406)
Transactions with owners
Distributions to owners
Returns of capital
Other—funds set aside for future ComLaw software development / (684) / – / – / (684)
Contributions by owners
Departmental capital budget / – / – / 930 / 930
Sub-total transactions with owners / (684) / – / 930 / 246
Estimated closing balance
as at 30 June 2015 / 3,457 / 1,604 / 6,772 / 11,833

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
OPERATING ACTIVITIES
Cash received
Appropriations / 20,149 / 22,390 / 19,348 / 19,428 / 20,452
Sale of goods and rendering of services / 6,947 / 5,725 / 5,795 / 5,872 / 5,954
Net GST received / 257 / 190 / 190 / 190 / 190
Total cash received / 27,353 / 28,305 / 25,333 / 25,490 / 26,596
Cash used
Employees / 16,564 / 15,782 / 16,249 / 16,231 / 16,370
Suppliers / 4,611 / 4,654 / 4,005 / 3,799 / 3,872
s 74 retained revenue receipts
transferred to Official Public Account / 6,205 / 5,041 / 5,111 / 5,188 / 5,270
Other / – / – / – / 272 / –
Total cash used / 27,380 / 25,477 / 25,365 / 25,490 / 25,512
Net cash from (used by)
operating activities / (27) / 2,828 / (32) / – / 1,084
INVESTING ACTIVITIES
Cash used
Purchase of property, plant,
equipment and intangibles / 11 / 3,680 / 488 / 149 / 1,470
Total cash used / 11 / 3,680 / 488 / 149 / 1,470
Net cash from (used by)
investing activities / (11) / (3,680) / (488) / (149) / (1,470)
FINANCING ACTIVITIES
Cash received
Contributed equity / 11 / 930 / 488 / 149 / 386
Total cash received / 11 / 930 / 488 / 149 / 386
Net cash from (used by)
financing activities / 11 / 930 / 488 / 149 / 386
Net increase (decrease)
in cash held / (27) / 78 / (32) / – / –
Cash and cash equivalents at the
beginning of the reporting period / 372 / 345 / 423 / 391 / 391
Cash and cash equivalents at the
end of the reporting period / 345 / 423 / 391 / 391 / 391

Prepared on Australian Accounting Standards basis.

Table 3.2.5:Departmental capital budget statement

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
NEW CAPITAL APPROPRIATIONS
Capital budget—Act No. 1 (DCB) / 288 / 930 / 488 / 149 / 386
Total new capital appropriations / 288 / 930 / 488 / 149 / 386
Provided for:
Purchase of non-financial assets / 288 / 930 / 488 / 149 / 386
Total items / 288 / 930 / 488 / 149 / 386
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation—DCB(1) / 11 / 2,030 / 488 / 149 / 386
Funded internally from
departmental resources(2) / – / 1,650 / – / – / 1,084
Total amount spent / 11 / 3,680 / 488 / 149 / 1,470
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases / 11 / 3,680 / 488 / 149 / 1,470
Total cash used to
acquire assets / 11 / 3,680 / 488 / 149 / 1,470

Consistent with information contained in the statement of asset movements and the budgeted statement of cash flows.

DCB = departmental capital budget.

(1) Includes funding from both current and prior years’ DCB appropriations.

(2) Includes funding from prior year Act 1 appropriations (excluding amounts from the DCB).

Table 3.2.6: Statement of asset movements (2014–15)

Other
property, / Computer
plant & / software &
Buildings / equipment / intangibles / Total
$’000 / $’000 / $’000 / $’000
As at 1 July 2014
Gross book value / 701 / 992 / 4,958 / 6,651
Accumulated depreciation/
amortisation and impairment / (311) / (411) / (2,292) / (3,014)
Opening net book balance / 390 / 581 / 2,666 / 3,637
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase—appropriation
ordinary annual services(1) / 3,337 / 341 / 2 / 3,680
Total additions / 3,337 / 341 / 2 / 3,680
OTHER MOVEMENTS
Depreciation/amortisation expense / (224) / (152) / (714) / (1,090)
Total other movements / (224) / (152) / (714) / (1,090)
As at 30 June 2015
Gross book value / 4,038 / 1,333 / 4,960 / 10,331
Accumulated depreciation/
amortisation and impairment / (535) / (563) / (3,006) / (4,104)
Closing net book balance / 3,503 / 770 / 1,954 / 6,227

Prepared on Australian Accounting Standards basis.

(1) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) from current and prior year appropriations.

3.2.3Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with the Finance Minister’s Orders, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Revenue from government

Appropriations for departmental programmes are recognised as revenue, with the exception of departmental capital budget appropriations which are recognised as equity.

Employee expenses

Employee expenses consist of salaries, superannuation and leave entitlements.

Supplier expenses

Supplier expenses consist of office lease, information technology, Bill printing and other administrative costs.

Cash

Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Receivables

Receivables include both trade and appropriation. Appropriation receivables are appropriations controlled by OPC but held in the Official Public Account to be drawn as required.

Non-financial assets

Purchases of property, plant and equipment are recognised initially at cost, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items that are significant in total).

The Finance Minister’s Orders require property, plant and equipment to be measured at fair value.

Liabilities

Supplier payables consist of trade creditor and accrued supplier expenses. Other payables consist of unearned income from training courses. Employee provisions consist of annual and long service leave liabilities and accrued salaries and superannuation. Other provisions consist of make-good provisions for the office.

Equity

Departmental capital budget appropriations are for the purchase of assets and are shown as an increase in contributed equity.

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